SENATE BILL REPORT

SB 5806

BYSenator Bluechel

Specifying under what conditions the commission shall alter exchange area or territorial boundaries.

Senate Committee on Energy & Utilities

Senate Hearing Date(s):February 14, 1989; February 23, 1989

Majority Report:  That Substitute Senate Bill No. 5806 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Benitz, Chairman; Bluechel, Vice Chairman; Metcalf, Owen, Stratton, Williams.

Senate Staff:Paul Ahern (786-7449)

                  February 23, 1989

AS REPORTED BY COMMITTEE ON ENERGY & UTILITIES, FEBRUARY 23, 1989

BACKGROUND:

Telephone service in a local exchange area may be best provided by an alternative telecommunication company.  During last year's legislative session, a bill was proposed that provided for conditions under which a telecommunication company service territory could be changed or transferred.  That situation grew out of a situation at Ames Lake, a community in west central King County.  Residents of this area are served by Telephone Utilities and have complained of chronic quality of service problems.  During the last year Telephone Utilities has installed new digital equipment in the area in an attempt to address these concerns.  The residents of Ames Lake have expressed a desire to be incorporated into GTE service area.  However, the Utilities and Transportation Commission lacks authority to transfer franchise territory.  This proposed legislation allows a transfer of service territory pursuant to the application of specific standards.

SUMMARY:

RCW 80.36.230 is amended to expand the powers of the Utilities and Transportation Commission in setting territorial boundaries for telecommunication companies.  The commission may initiate proceedings on its own motion or at the request of a majority of the affected exchange area subscribers.  Companies will be required to negotiate if a petition is filed by exchange area customers.  The new supplier of service is required to specify in writing its ability and willingness to accept new customers.  Additionally, the exchange area must not have been altered for the last seven years and must not create a noncontiguous exchange area.  This bill will apply to only class AA designated counties, i.e. counties with populations in excess of 500,000.

EFFECT OF PROPOSED SUBSTITUTE:

A majority petition is required in the exchange requesting a move to a new telephone company.  A vote is not required in the exchange area to which they move.

The commission, under specified conditions, has the discretion, rather than being directed to do so, of altering exchange and/or territorial boundaries.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested February 6, 1989

Senate Committee - Testified: Glen "Jack" Fykerud, Greater Ames Lake Telephone Company (pro); Eileen Harry, Greater Ames Lake Telephone Company (pro); Steve McLellan, UTC (pro); Jack Doyle, WITA (con)